Wednesday, February 26, 2020

No time for ABS-CBN franchise in House? Solon says there is if leaders willed it

A member of the House of Representatives sought to dispute a claim there’s no time left for the chamber to take up the franchise renewal of broadcast giant ABS-CBN before Congress’ Lenten break, saying there would be time if the House leadership willed it.

Albay Rep. Edcel Lagman said on Tuesday (Feb. 25) that this was possible only if the House leadership was really intent on acting on several pending bills renewing the ABS-CBN franchise.

Lagman also stressed that House leaders cannot use lack of time because of the need to focus on priority bills as the reason for inaction on the ABS-CBN franchise. He said only four measures could be considered priority because these were mentioned by President Rodrigo Duterte in his last State of the Nation Address.

“The House leadership cannot claim that it is overwhelmed or besieged by pending priority bills because the Senate and the House leaderships after the Sona of the President, during the opening of the 18th Congress, had prioritized only four bills,” he said at a press briefing.

“So we have time if the leadership really wants to act on the bill,” Lagman said.

“There is time before that (break), six-session days more which we can devote to the approval of this measure,” he added.

According to Lagman, the four bills — the fifth tranche of the salary standardization law, the postponement of barangay elections, the creation of a Department of Overseas Filipino Workers, and free legal assistance for military personnel — have been acted upon by the House.

Both the salary standardization law and the suspension of barangay elections have been enacted into laws already.

“No other bills have been officially prioritized pending the convening of the legislative-executive development advisory council, the meeting of which has been long overdue,” he noted

Several House officials, including Speaker Alan Peter Cayetano, said that it is impossible to continuously discuss pending bills before ABS-CBN’s franchise expires on May 4 due to the scheduled Lenten break.

Cayetano previously said that he preferred to hear the ABS-CBN franchise issue in one full sweep rather than leaving cliffhangers while Congress is on Lenten break.

Cagayan de Oro Rep. Rufus Rodriguez and Cebu Rep. Raul Del Mar have filed joint resolutions calling for the extension of the ABS-CBN franchise for Lagman also said the bills being discussed by the House right now are local bills that have little national significance.

“Since the House is not preoccupied with major measures, its plenary sessions are currently devoted to privilege speeches and approval of local and private bills, and some general bills many of which have no, or little national consequence,” he said.

Aside from the expiration of its franchise, ABS-CBN is facing other problems, stemming from the Office of the Solicitor General’s quo warranto petition against it.

Duterte had been ranting against ABS-CBN and had declared opposition to the broadcast giant’s franchise renewal. Duterte has the power to concur with or veto proposed laws. A approve or veto would require two-thirds vote of Congress to override.

Duterte protested the alleged refusal by ABS-CBN in the 2016 campaign to air Duterte’s ads.

https://newsinfo.inquirer.net/1233793/no-time-for-house-lawmaker-insists-theres-plenty-of-time-to-discuss-abs-cbn-franchise

House asks NTC to give ABS-CBN authority to operate as franchise nears expiry

The House Committee on Legislative Franchises has formally requested the National Telecommunications Commission to grant ABS-CBN a provisional authority to operate effective May 4 until the House of Representatives has made a decision on its franchise renewal application.

In a letter signed by the House panel chair Franz Alvarez and Speaker Alan Peter Cayetano, the NTC is also urged to issue the same provisional authority to operate to ABS-CBN's subsidiaries and/or affiliates whose franchise applications are also pending with the House panel, namely ABS-CBN Convergence, Inc., Sky Cable Corporation, and Amcara Broadcasting Network, Inc.

Alvarez and Cayetano informed the NTC that the House panel has already started its deliberations on the ABS-CBN franchise bills and asked concerned parties to submit position papers for or against the franchise application within 60 days from February 24.

They also asked the NTC to included in the respective provisional authorities the terms and conditions that need to be followed to ensure the protection of public interest consistent with applicable laws, rules, and regulations.

“As we have been saying from the start, since ABS-CBN will be allowed to continue its broadcast while we are hearing their renewal, there is no urgency that would justify a hasty proceeding. We want to be sure that this matter is given the importance it deserves," Cayetano said in a statement on Wednesday.

Currently, there are 11 bills filed at the House of Representatives seeking to renew the franchise of ABS-CBN.

On Monday, Alvarez announced the panel is now open to accepting position papers for or against the renewal of the ABS-CBN franchise, signalling the start of the proceedings of the chamber on the matter.

He said that once all positions papers have been taken into consideration, the panel can formally start deliberating on the ABS-CBN franchise renewal bills. This, however, could take place either in May or in August, after President Rodrigo Duterte's State of the Nation Address.—NB, GMA News

https://www.gmanetwork.com/news/money/companies/727456/house-asks-ntc-to-give-abs-cbn-authority-to-operate-as-franchise-nears-expiry/story/

House asks NTC to let ABS-CBN operate pending franchise renewal

Metro Manila (CNN Philippines, February 26) — The House of Representatives has formally asked the National Telecommunications Commission to give ABS-CBN a provisional permit so it can continue operating pending the renewal of its franchise.

House Committee on Legislative Franchises chair Franz Alvarez sent the NTC a letter on Wednesday, duly confirmed by Speaker Alan Peter Cayetano. They enjoined NTC Commissioner Gamaliel Cordoba to grant ABS-CBN provisional authority to stay on air even after its franchise expires on May 4 until such time that the Congress decides on its application for a franchise renewal.

Cayetano and Alvarez also requested the same for ABS-CBN's subsidiaries and affiliates, including ABS-CBN Convergence, Sky Cable Corporation, and Amcara Broadcasting Network, Inc.

"Please include in their respective provisional authorities terms and conditions you deem appropriate to protect public interest consistent with applicable laws, rules, and regulations," the letter read.

Cayetano in a statement reiterated that the lower house cannot tackle ABS-CBN's franchise yet because it is still too busy with pressing concerns.

“As we have been saying from the start, since ABS-CBN will be allowed to continue its broadcast while we are hearing their renewal, there is no urgency that would justify a hasty proceeding," Cayetano said.

There are 12 House bills seeking to renew ABS-CBN's franchise, but all remain pending before the Committee on Legislative Franchises. Joint resolutions seeking to extend the Lopez-owned network's existing franchise until 2022 have also been filed in the House.

Presidential Spokesperson Salvador Panelo in a press briefing on Wednesday said that instead of a resolution, Congress should once and for all pass a measure granting ABS-CBN another franchise, so President Rodrigo Duterte can sign it into law.

Despite Duterte's public pronouncements against the network, MalacaƱang maintains he does not have anything to do with the delay in the legislative action on its franchise.

Senate resolution

A proposal for a concurrent resolution has also been filed in the Senate on Wednesday seeking the issuance of a provisional permit for ABS-CBN. Senate Concurrent Resolution No. 6, filed by Minority Leader Franklin Drilon, seeks the concurrence of the House "to express the sense of the Congress that ABS-CBN Corporation should be allowed to operate under the terms of its existing franchise pending final determination of the renewal of its franchise by the 18th Congress."

Drilon cited Justice Secretary Menardo Guevarra's statement that since Congress has the power to grant franchises, it also has the authority to determine the rights of an applicant, in this case, ABS-CBN.

Guevarra earlier told a Senate hearing that Congress, through a concurrent resolution, can authorize the NTC to grant ABS-CBN provisional authority, allowing it to continue operating even after its franchise expires in May. The NTC then said it would be easier for them to issue the temporary franchise if the order comes from Congress.

Senate President Vicente "Tito" Sotto III, however, said a concurrent resolution should no longer be necessary since the NTC has in the past granted provisional permits without Congress resolutions.

A 1994 agreement between the House, the NTC, and the media group Kapisanan ng mga Brodkaster ng Pilipinas provides a mechanism for media entities with expiring Congressional franchises. The memorandum of understanding states that the NTC "shall continue to issue and grant permits or authorizations to operate" for radio and TV stations for a two-year period as long as there is a pending bill seeking to renew its franchise.

However, former Chief Justice Reynato Puno said this could no longer be done, since a 2003 Supreme Court decision, which he himself penned, had ruled that there is a need for an existing license before a corporation can operate. This means the only way for ABS-CBN to keep operating is for Congress to finally renew its 25-year franchise; and a provisional permit from the NTC, even if allowed by Congress, would not be executory.

Drilon disagreed with Puno, saying Congress, like the Supreme Court, has the right to interpret the Constitution. "We should not be frozen into inaction by the decision of the Supreme Court," he said.

CNN Philippines' Xianne Arcangel contributed to this report.

https://cnnphilippines.com/news/2020/2/26/abs-cbn-franchise-provisional-permit-.html

Scenarios: What's next for ABS-CBN's franchise after Senate hearing?

We tackle 4 scenarios for the beleaguered broadcasting company

ABS-CBN Corporation may continue to operate past its franchise expiration on May 4, but this would be – as what legal experts have described – standing on shaky ground.

At stake is press freedom, because the top broadcasting network is one of 3 media companies that President Rodrigo Duterte has targeted for closure since assuming power in 2016 – aside from the Philippine Daily Inquirer and Rappler. More than 11,000 ABS-CBN employees also stand to lose their jobs should the company be forced to cease operations after May 4.

A Senate hearing on Monday, February 24, presented regulatory and government agencies that cleared ABS-CBN of allegations it evaded taxes, abused its pay-per-view services, practiced unfair labor, and allowed foreign ownership.

Congress has around two weeks remaining before it adjourns on March 14. Legislators will be back on May 4, the same day ABS-CBN's 1995 franchise expires.

Republic Act 7966, which granted ABS-CBN's franchise, is set to expire 25 years from March 30, 1995. But since the law became effective only 15 days after its publication on April 19 that year, the justice department said the franchise actually expires on May 4, 2020.

Subsidiary ABS-CBN Convergence's franchise, meanwhile, was enacted on February 23, 1995 through Multi-Media Telephony. Convergence's current offering "ABS-CBN TVplus," where the pay-per-view "Kapamilya Box Office" can be availed of, is also the subject of Solicitor General Jose Calida's quo warranto petition in the Supreme Court. Its 25-year franchise is set to expire this year as well.

What happens now?

Scenario 1: NTC issues provisional broadcast permit

The National Telecommunications Commission (NTC), the agency responsible for issuing permits to allow broadcast operations, can allow ABS-CBN to operate as it awaits renewal of its franchise.

Senator Grace Poe, citing precedence, said NTC did not close down the telecommunications operations of Smart and PT&T when their franchises expired and as they waited for their renewal.

The same principle was applied when the Catholic Bishops' Conference of the Philippines' (CBCP) franchise lapsed, with NTC asking Congress for "guidance." In a February 2018 letter to the House of Representatives obtained by Rappler, NTC had to ask the lower chamber to apply the case of Smart and PT&T to CBCP's broadcast arm.

In the case of ABS-CBN, Justice Secretary Menardo Guevarra said that NTC can issue a provisional authority on the basis of "equity." He said this can be applied when there's a gap in the law. A retired chief justice disagrees, however.

"Hindi naman kasalanan ng company na hindi pa naa-aprubahan ng Kongreso 'yong kaniyang application (It's not the fault of the company if Congress has yet to approve its application)," said Guevarra in a chance interview on Monday.

Guevarra added that a concurrent resolution adopted by Congress – which does not need to be signed by the President – can be the basis for NTC's temporary permit.

Even then, NTC Commissioner Gamaliel Cordoba conceded this can be "withdrawn anytime," if alleged franchise violations are proven true.

Senate President Vicente Sotto III questioned the need for Congress' intervention when previous cases were allowed by NTC. "Why are they placing the burden on us? They should be decisive enough to act," Sotto said on Tuesday, February 25.

Scenario 2: Congress passes resolution allowing ABS-CBN to operate until 2022

Senators are not convinced that a "concurrent resolution" would provide ABS-CBN legal basis to operate without a new franchise.

A concurrent resolution, when adopted, does not have the effect of law, senators said. In the case of ABS-CBN, a concurrent resolution can be adopted in one congressional session, which merely conveys the sense of the two chambers about extending the media giant's franchise.

A joint resolution, on the other hand, follows the same approval process for a bill. It passess through the 3rd reading and requires the signature of the President. Like a bill, it has the effect of law. It is the route taken, for instance, whenever the validity of national budgets is extended.

So far, Senate Minority Leader Franklin Drilon and Cebu City 1st District Representative Raul del Mar have both filed joint resolutions seeking to extend the validity of ABS-CBN's franchise to 2022. Drilon wants it extended until December 31, 2022, while Del Mar proposed a shorter period, June 30, 2022.

Drilon stressed that while a concurrent resolution cannot be a "legal basis" for ABS-CBN to operate, he said he would still file one just to show and send the signal to NTC the Senate's position favoring the company's continued operations.

There are strictly around 7 session days left before Congress adjourns on March 14, but this is enough time for a concurrent resolution.

It would take a miracle, though, for a joint resolution to be passed within the period – from discussions at the committee level to deliberations, amendments, and final approval in the plenary.

The Drilon-led joint resolution has already been heard by Poe's Senate committee, while the House hasn't tabled its counterpart hearing. The House, however, started "proceedings" on Monday, February 24, by asking stakeholders to submit position papers on the renewal of ABS-CBN's franchise.

"Minsan may mirakulo din naman sa House of Representatives, na natatapos naman nila kaagad 'pag talagang priority measure. Normally, mahihirapan tayo lalong-lalo na 'pag isang isyu na pinag-uusapan na ganito, dahil mahaba-haba ang debate, pero baka naman sakaling mangyari 'yun," Poe said of the joint resolution.

(Sometimes the House of Representatives can work miracles, when they immediately pass a measure if it's priority. Normally, we encounter difficulties whenever we hear issues as huge as this, because the debates are long, but maybe it can happen.)

Scenario 3: Congress passes law renewing ABS-CBN's 25-year franchise

Congress passing the bill renewing ABS-CBN's franchise anytime soon seems unlikely, as the lower chamber's legislative franchise committee has not indicated it would fast-track the process.

Apart from presidential ire, no less than House Speaker Alan Peter Cayetano has an axe to grind against the media network, accusing it of unfair election coverage in the 2010 and 2016 elections. Cayetano even said that the House will schedule hearings on the franchise as late as "May or August."

But if Congress decides to act swiftly on the franchise bill when session resumes from May 4 to June 5, then all ABS-CBN has to do is to wait for the President to sign it.

After all, ABS-CBN's CEO has already apologized to the President. Duterte's aide, Senator Christopher "Bong" Go, also said he would "appeal" to the President for him to reconsider his stand against the company.

Should Duterte decide to approve or veto the measure, it would take a two-thirds vote from Congress to overturn it.

Scenario 4: ABS-CBN ceases operations after franchise expires

It's almost an unthinkable scenario.

Whether ABS-CBN will be allowed TV and radio operations between the time its franchise expires and the day it's finally renewed is still up for debate. But if NTC decides to just implement the President's wishes, then ABS-CBN and Convergence will have to stop operating after May 4.

While parent company ABS-CBN Holdings would still be able to survive sans the franchise, revenues would drop significantly. ABS-CBN Holdings has since diversified to cable, digital media, merchandise, and consumer experiences.

Based on its latest financial statement, ABS-CBN Holdings has consolidated revenues amounting to P32 billion for the first 3 quarters of 2019. More than half of that (P17.11 billion) came from advertising, while about a third (P10.22 billion) came from subscription revenues largely from SkyCable.

The non-renewal of the franchise will be bad for business. It will not be appetizing for investors, Philstocks head of research Jun Calaycay earlier told Rappler. (READ: ABS-CBN stocks fall after Duterte’s threats of not renewing franchise)

Government also stands to lose, based on ABS-CBN's previous years' tax payments, an average of P4.8 billion in corporate income taxes and roughly P1 billion in personal income taxes.

The Philippine Competition Commission also warned against ABS-CBN's closure, saying a less competitive environment would give undue advantage to the next biggest network, GMA, which may end up getting at most 55% of the total market share.

ABS-CBN's closure will also have a chilling effect on the media and the public. It is the same company, after all, that was shut down by dictator Ferdinand Marcos when he declared Martial Law in 1972.

https://www.rappler.com/newsbreak/iq/252688-scenarios-abs-cbn-franchise-after-senate-hearing

Drilon files concurrent reso to allow ABS-CBN to operate pending franchise renewal

Senate Minority Leader Franklin Drilon filed on Wednesday a concurrent resolution that would allow ABS-CBN to continue to operate pending the renewal of its franchise.

Drilon filed Senate Concurrent Resolution No. 6 expressing the sense of the upper chamber that ABS-CBN Corp. “should be allowed to operate under the terms of its existing franchise pending final determination of the renewal of its franchise by the 18th Congress.”

The said resolution also seeks the issuance by the National Telecommunications Commission of the appropriate provisional authority to the media giant as bills on its franchise renewal remain pending in Congress.

https://newsinfo.inquirer.net/1233579/drilon-files-concurrent-reso-to-allow-abs-cbn-to-operate-pending-franchise-renewal

Lawmaker says NTC approval not needed in franchise extension

ABS-CBN Corp. does not need provisional authority from the National Telecommunications Commission (NTC) to continue its operations once the House of Representatives and the Senate approved the joint resolution extending the validity of the network’s franchise until the end of the 18th Congress, a congressman said.

“There is no need to go to the NTC. Congress itself can extend, because it has absolute power and jurisdiction over franchises. But then, when there is an approval by the House and the Senate, it goes to the President for signature,” Cagayan de Oro Rep. Rufus B. Rodriguez, who chairs the House committee on constitutional amendments and vice chair of the committee on justice, said in a television interview on Tuesday.

His statement comes after Justice Secretary Menardo I. Guevarra said at a Senate hearing on Monday that Congress can file a resolution authorizing the NTC to issue a provisional authority to ABS-CBN.

Mr. Rodriguez said the joint resolution should already extend the media network’s franchise.

“What I would say is that the joint resolution should already extend it. We are in power to grant franchises. So therefore, our resolution would say you’re extended until we decide on the franchise extension,” he said.

Senate Minority Leader Franklin M. Drilon earlier filed a joint resolution seeking to extend the franchise of ABS-CBN until the end of the 18th Congress on June 30, 2022.

Cebu Rep. Raul V. del Mar also filed a similar bill in the House of Representatives on Feb. 18.

House Majority Leader and Leyte Rep. Ferdinand Martin G. Romualdez said in a statement that the House committee on rules “acted with dispatch” on Mr. del Mar’s House Joint Resolution (HJR) 28.

“It is now up to the Committee Chairman and Members to decide on how to dispose of the HJR No. 28, whether to prioritize it over a slew of ABS-CBN franchise extension bills filed separately by 11 other congressmen,” he said.

Mr. Romualdez asked stakeholders to “give the House committee on legislative franchises enough time to deliberate intelligently” on the media network’s franchise extension.

Mr. Rodriguez said that the quo warranto petition of Solicitor General Jose C. Calida “has no basis in fact and in law” after various officials clarified in the Senate hearing that the media network “has not committed any violation.”

“On all of this basis for the quo warranto petition of Calida, they were all debunked in that hearing where the responsible officials have already said that the ABS-CBN has not committed any violation. NTC, SEC (Security and Exchange Commission), BIR (Bureau of Internal Revenue) and the Department of Labor,” he said.

On Monday, ABS-CBN submitted its written reply to the Supreme Court on the quo warranto petition that was filed by the Solicitor General.

“The justices will read the submission of ABS-CBN and compare it to the petition. I am confident… that the Supreme Court will dismiss this case and not to give due course to the petition of SolGen Calida,” Mr. Rodriguez said.

There are currently 12 bills pending in the House committee on legislative franchises seeking to renew the franchise of the media network.

Palawan Rep. Franz E. Alvarez, who chairs the committee, said that the panel is open to receive position papers of the supporters and opposers of the media network’s franchise renewal.

He also added that formal hearings on the matter may start either in May or August.

ABS-CBN’s franchise will expire on May 4, 2020. Congress only has seven session days left before it adjourns for its Holy Week and Easter recess on March 13.

Meanwhile, Senate President Vicente C. Sotto III said the chamber should first settle the need for a concurrent resolution to extend the validity of the ABS-CBN franchise.

Mr. Sotto deemed it is not necessary, arguing Congress did not have to go through the same proceeding in similar cases prior.

“I’m just wondering why they want a resolution from us when in the previous expired franchises they never asked for one,” he told reporters via a phone message, Tuesday.

“Why are they placing the burden on us? They should be decisive enough to act.”

The NTC at Monday’s Senate hearing explained it is needed considering there is objection in the renewal of extension, citing the quo warranto petition.

When asked whether he will support the resolution Mr. Drilon plans to file on Wednesday, Mr. Sotto said “pag-uusapan muna (we will talk about it).”

Mr. Drilon clarified the concurrent resolution does not have the effect of a law, but will serve as basis for the NTC that Congress, whose mandate is to grant franchises, is allowing the network to continue its operations.

Also sought for comment, Senator Emmanuel Joel J. Villanueva supported the filing of the resolution to protect the livelihood of the more than 11,000 direct employees of ABS-CBN. — Genshen L. Espedido and Charmaine A. Tadalan

https://www.bworldonline.com/lawmaker-says-ntc-approval-not-needed-in-franchise-extension/